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Unemployment Overpowering Welfare Programs Economics Essay

The working hapless in United States are people who work but they get low rewards and ca n’t purchase apparels, nutrient, lodging, or medical demands. The unemployment rate is above 8 % . These factors are take downing the sum of money which the authorities gets for revenue enhancements to pay for plans. Even though there are enormous wealths at the top of America, unemployment and low rewards are overmastering public assistance plans.

Background

The chief public assistance plans, or “ safety cyberspace, ” began in the 1930s with the New Deal. In 1964, the War on Poverty increased the plans. In 1996, public assistance reforms changed the plans to concentrate on working households. ( Katel, 2009 ) Today the chief plans are Food Stamps or nutrient from local, private, non-profit-making organisations, Housing and Urban Development ( HUD ) or Section 8 lodging allowance, Medicaid, and earned-income revenue enhancement recognition ( EITC ) . So people have adequate nutrient, Food Stamps or nutrient is given to people who do non hold a occupation or have a low wage. The people can take the Food Stamps to the shop and purchase nutrient or cleansing points. The Food Stamps and school tiffin plans are assisting many people get nutrient every twenty-four hours, but some the people need to acquire more nutrient from the private, non-profit-making organisations. So people have a topographic point to populate, they need lodging. To acquire lodging they apply for rent subsidy or aid from HUD. If people get ill, they get aid from Medicaid or the Children ‘s Health Insurance Program ( CHIP ) . Finally, the Earned-Income Tax Credit helps people if they have low paying occupations. ( Cooper, 1995 ) The “ safety cyberspace ” plans are in topographic point, but several things are impacting the sum of money available. The sum of revenue enhancement money has been reduced because of low wage occupations, and people who are laid off from work. But, the rich seem to be acquiring richer and pay lower revenue enhancement rates.

The inquiry is, “ what is the authorities ‘s duty to the low-salary people? ” In the 1930s, the New Deal started the societal plans. The authorities expanded the plans in 1964 and added Aid to Families with Dependent Children ( AFDC ) . The authorities changed the plans in 1996 to concentrate on forcing people into the workplace. This public assistance reform was necessary because in 1964 1.7 million households with 3 million kids received AFDC. In 1995, 4.5 million households and 8.4 million kids received aid. ( Katel, 2009 ) Recently, the authorities helped to “ temporarily strengthened the safety cyberspace system ” by holding a $ 787 billion stimulation jurisprudence enacted and funded the Children ‘s Health Insurance Program ( CHIP ) ( Katel, 2009 ) .

Problems

The jobs of the on the job hapless are many. Marlene Kim ( 1999 ) said the basic jobs were that the working hapless 1. hold the lowest-paying occupations and acquire laid off first – 30 % in retail trade occupations, 37 % in service occupations ; 2. deficiency full-year employment – merely 59 % work twelvemonth about, 20 % work nonvoluntary parttime occupations ; 3. deficiency higher instruction – 8 % hold college grades, 67 % hold high school grades, and 25 % have no high school grade ; 4. have wellness jobs – 33 % have wellness restrictions or conditions which prevent full-time work ; 5. have few two parent households – 30 % married twosomes, and 49 % single-woman households ; 6. have less entree to wellness attention with merely 18 % holding wellness insurance through occupations ; and 7. have many who do non take part in public assistance plans.

Mary Cooper ( 1995 ) and Peter Katel ( 2009 ) wrote about the fact that there are many plans for the hapless people but less money for the public assistance plans because the plans get money from the authorities revenue enhancements. Because unemployment is higher, revenue enhancements are down, and lower revenue enhancements mean less money for plans. In 2006, 64 million people were hired. In 2007, 63 million people were hired. In 2008, merely 56 million people were hired. Compare this to the figure of people who lost their occupations. In 2006, 21 million people lost their occupations. In 2007, 22 million people lost their occupations. In 2008, 24 million people lost their occupations. So the figure of people with no occupations increased while the figure of people being hired went down. This increased the figure of people without occupations or in poorness. They need help from public assistance plans. Finally, there is a wider spread between the rich and hapless harmonizing to Peter Katel ( 2009 ) . This may hold happened because the lower limit pay has non equaled the addition in the cost of life, or money to pay for lodging, nutrient, vesture, and other necessities.

Solutions

Marlene Kim ( 1999 ) wrote about possible solutions to the basic jobs. First, the hapless demand higher rewards. Second, they need occupations which last a full twelvemonth with fewer lay-offs. Third, they need pay addendums such as Housing and Urban Development ( HUD ) , earned-income revenue enhancement recognition ( EITC ) , and Food Stamps. Fourth, they need wellness attention insurance such as MEDICAID. Fifth, they need child attention so they can work. Finally, there must be income support for the handicapped.

Mary Cooper ( 1995 ) wrote about the plans to assist people in poorness. Those plans included rent aid ( HUD ) , earned-income revenue enhancement recognition ( EITC ) , nutrient casts, and wellness attention ( Medicaid ) . Peter Katel ( 2009 ) wrote about the same plans to assist the on the job people. He called the plans a safety cyberspace. Both suggested that we need people to work so they pay revenue enhancements to back up themselves and the public assistance plans.

Groups like Occupy Wall Street are seeking to convey attending to the spread between the rich and hapless with their sit-ins. The feeling of many is to hold the rich wage a higher per centum of revenue enhancements. Another solution is to increase minimal pay so the hapless have adequate money to pay for lodging, nutrient, vesture, and other necessities. This will take away the force per unit area on public assistance plans. ( Abramsky, 2012 )

Unemployment and low rewards are overmastering public assistance plans. The first solution is to acquire more occupations for people who are unemployed. The 2nd solution is to raise rewards. These will give money to people to pay for necessities and revenue enhancements. The solutions sound easy but they need people to work together. The authorities and concerns need to happen ways to acquire occupations which pay adequate money for hapless people to purchase what they need to populate. There are enormous wealths at the top of America, so if more people are working, they wo n’t necessitate to hold so many public assistance plans.